Europe and US COVID-19 Concerns Rise, Markets Rebound
Gold and Oil Markets Plunge Simultaneously
[Asia Economy New York=Correspondent Baek Jong-min] As the likelihood of Joe Biden, the Democratic presidential candidate, winning increases, the value of the US dollar, which had been weakening for days, has turned strong. Analysts say the rapid resurgence of the novel coronavirus infection (COVID-19) has pushed the dollar's value back up.
On the 28th (local time), the dollar index, which shows the value of the dollar against major currencies, rose 0.58% to 93.468. The dollar index had formed a low of 92.5 on the 21st but surged sharply on this day, clearly showing strength. The dollar index had recently weakened amid expectations of large-scale fiscal spending if Biden were elected.
MarketWatch reported that as COVID-19 spreads rapidly in Europe and the US, investors are flocking to the dollar seeking safe-haven assets. In particular, the euro has plunged due to concerns over the possibility of comprehensive controls related to COVID-19, boosting the dollar's value.
Along with the dollar's strength, gold futures have recently been at their lowest levels in three weeks. On this day, gold prices fell 1.96%, trading around $1,875.
International oil prices are also plunging. West Texas Intermediate (WTI) crude oil is trading around $37, down 5% due to concerns over reduced consumption and the strong dollar.
Risk assets such as stock markets worldwide are also sharply falling. In the New York stock market, the Dow Jones Industrial Average, S&P 500, and Nasdaq are all down about 3%. European stock markets, including Germany's, are also recording large declines of around 4%.
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